Carlsberg vows to pay more earnings as dividends

Carlsberg, the world’s fourth-biggest brewer, has pledged to pay more of earnings in the form of dividends as its new chief unveiled his strategy for the next six years.

The company will distribute 50% of annual net income to investors, Carlsberg said yesterday, exceeding the current payout ratio of 31%.

The Danish brewer also reaffirmed its commitment to Russia, where it’s the biggest beermaker and has closed plants in response to falling consumption.

There were few other firm goals in the strategy statement unveiled by chief executive Cees ’t Hart. Carlsberg shares fell 2percent in Copenhagen.

The company said it will seek to keep debt at less than two times EBITDA, and will distribute excess cash through buybacks or extraordinary dividends.

“These actions are evidence in our view that the new management has full focus on shareholder value rather than growth,” analysts at Nykredit in Copenhagen said in a note.

Carlsberg’s new strategy comes as the brewer battles slowing demand for mass-market beer in Europe and North America, and weakening consumption in China.

The beermaker has also announced 2,000 job cuts to increase profitability as it faces an enlarged rival from the $106 billion combination of Anheuser-Busch InBev and SABMiller.